Exchange rules rejected by California Office of Administrative Law

[Al Gobbi]

The California Office of Administrative Law recently rejected rules permitting exchange wagering in the state, but has yet to give a reason for the rejection, a California Horse Racing Board spokesman said on Wednesday.

The racing board approved rules for exchange wagering in November 2012, and sent documents to the Office of Administrative Law earlier this year for legal review. That office rejected the rules earlier this month, but has yet to publish its findings. Companies such as TVG-Betfair have supported the implementation of exchange wagering.

http://www.drf.com/news/exchange-bet...nistrative-law

[Socalracefan]

Interesting. We will have to see how that develops. I hear about exchange wagering all the time here in Southern California on the Roger Stein show. He really seems to be the only one discussing it.

[horses4courses]

It's going to be a big setback for Betfair and, ultimately, TVG when exchange wagering finally goes six feet under in the US - and it will.

Those involved in UK gambling don't fully understand the US gaming environment, and vice versa.
Exchange wagering stands about the same chance as sports betting in this country - slim to none.

Why is that?
Because it's bookmaking.

Just because you dress a duck up differently, if you see it waddle, and you spot the webbed feet, you know it's still a duck.

[usedtolovetvg]

You quack me up.

[Some_One]

Just another example of how close minded Americans are, say goodbye to TVG and Cali racing.

[Stillriledup]

Originally Posted by Some_One

Just another example of how close minded Americans are, say goodbye to TVG and Cali racing.

They're only closed minded because there's nothing in it for THEM. If they thought exchange wagering would create a situation where the horseman would stuff their pockets with newfound revenue, you can bet your bottom dollar there would be zero opposition to this.....bookmaking or not.

Also, an exchange wager is no different than betting on a 10 horse field....if you bet on one horse in a 10 horse field, you're essentially betting against the other 9 runners...no different than an exchange wager.

Del Mar didnt seem to have a problem offering win wagering on the Julie Krone/P Val match race a bunch of years ago and didnt have a problem 'booking' a two horse race with Mike and Chantal raced recently. Oh yeah, i forgot, normal 17 % takeout on that 'matchup', never mind, its ok to 'book' as long as the rake is what it normally is.

[Al Gobbi]

The launch of exchange wagering in California will be delayed for months, and possibly into 2014, after the state’s Office of Administrative Law recently cited extensive faults to a set of rules approved in 2012 by the California Horse Racing Board.

In a 19-page decision of disapproval published last Thursday, George C. Shaw, the Office of Administrative Law’s senior counsel, called for revisions to eight of the 25 rules. In a statement, the racing board said that the Office of Administrative Law cited “failure to comply with the specified standards of necessity, consistency, and clarity.”

http://www.drf.com/news/californias-...-major-setback

[SandyW]

Originally Posted by Al Gobbi

The launch of exchange wagering in California will be delayed for months, and possibly into 2014, after the state’s Office of Administrative Law recently cited extensive faults to a set of rules approved in 2012 by the California Horse Racing Board.

In a 19-page decision of disapproval published last Thursday, George C. Shaw, the Office of Administrative Law’s senior counsel, called for revisions to eight of the 25 rules. In a statement, the racing board said that the Office of Administrative Law cited “failure to comply with the specified standards of necessity, consistency, and clarity.”

http://www.drf.com/news/californias-...-major-setback

According to California officials in the know, exchange wagering is as dead as kelsey's you know what for the near and for the foreseeable future.

[edmond1]

Betfair wake up !!!! Sell TVG so that you can then re-offer markets on California tracks.....Can't see it working out in U.S. anyway -10% commissions too high/ too many obstacles(state/country)..... HOW MUCH MORE MONEY CAN YOU AFFORD TO BLOW......

[classhandicapper]

It's sad, but US racing probably deserves to die the slow death it's going through now given the way it's run. This industry is a comedy of errors, stupidity, shortsightedness, corruption, incompetence etc... It's not even like there aren't workable models we can learn from overseas. Yet we learn nothing and continue to do everything wrong right in the face of basic business and economics. I almost wish I didn't have any family obligations. I'd probably pack my bags and play horses in Australia or somewhere else.

[Stillriledup]

Originally Posted by classhandicapper

It's sad, but US racing probably deserves to die the slow death it's going through now given the way it's run. This industry is a comedy of errors, stupidity, shortsightedness, corruption, incompetence etc... It's not even like there aren't workable models we can learn from overseas. Yet we learn nothing and continue to do everything wrong right in the face of basic business and economics. I almost wish I didn't have any family obligations. I'd probably pack my bags and play horses in Australia or somewhere else.

You hit the nail on the head here.

People who have pull in this game just won't ever listen to people who know more than they do about the sport. Players panel came out with a bunch of great suggestions about 10 years ago and we're still talking about basic stuff. Some tracks cant even figure out how to time their races properly.

[usedtolovetvg]

Nobody gives a s**t what the player wants. Like everyone else they are just protecting their paychecks and payoffs (not payouts). If the guys in charge of any business actually cared about their customers, this country would be a lot better off. But.. they don't.

[Fager Fan]

Originally Posted by Some_One

Just another example of how close minded Americans are, say goodbye to TVG and Cali racing.

Close-minded? To not want to just hand over millions to Betfair? If Betfair wants to get a cut of the handle, why don't they go and make an investment in a track? No, they just want to be the leech who siphons off a big chunk of racing's profits - on the backs of the owners and bettors.

[Charli125]

Originally Posted by Fager Fan

Close-minded? To not want to just hand over millions to Betfair? If Betfair wants to get a cut of the handle, why don't they go and make an investment in a track? No, they just want to be the leech who siphons off a big chunk of racing's profits - on the backs of the owners and bettors.

That about summarizes the position of the industry. With that mindset, handle will continue to dwindle and the industry will wonder where everyone went.

According to that way of thinking, online stock trading platforms, like Scottrade, are leeches, who just want to siphon off a big chunk of profits.

[classhandicapper]

Originally Posted by Fager Fan

Close-minded? To not want to just hand over millions to Betfair? If Betfair wants to get a cut of the handle, why don't they go and make an investment in a track? No, they just want to be the leech who siphons off a big chunk of racing's profits - on the backs of the owners and bettors.

The idea is to create a model that is mutually beneficial to Betfair, the industry, and the players.

Exchange wagering for the player and Betfair is a no brainer. It can't happen fast enough.

So it comes down to attracting enough new money to the industry to more than offset the profits of Betfair and net out to extra money for the industry.

Most people believe that in order to attract new money to the industry you have to make the game more attractive and more competitive with poker, sports gambling, illegal off shore rebate sites, etc

The take is lower on the exchange and also gives you the added benefit of being able to lock in prices and book bets - both of which make it more appealing and competitive. The model appears to be working in other countries.

This feels like we have a huge pie in the refrigerator, but the host would rather starve itself to death than put it on the kitchen table because it wants to stuff itself with the biggest slice.